Time Warner Inc posted better-than-expected quarterly results, helped by stronger advertising, and ratcheted up its full-year outlook.
For the second quarter, the parent of CNN, HBO, Time magazine and Warner Bros studios, reported adjusted earnings per share of 60 cents, ahead of the average analyst forecast of 56 cents, according to Thomson Reuters I/B/E/S.
Revenue rose 10 percent to $7.03 billion, driven by a 9 percent rise in revenue at its cable networks unit, the company said on Wednesday. Cable's advertising sales were boosted by sports programing including the NCAA basketball championship.
Warner Bros revenue rose 13 percent helped by growth in video games like Mortal Kombat 9 and LEGO Pirates of the Caribbean as well as DVD sales of Harry Potter and the Deathly Hallows: Part 1.
Publishing revenue at its publishing unit Time Inc rose 3 percent as subscription revenues rose.
These were pretty solid results in line with our expectations, said Collins Stewart analyst Thomas Eagan. The profit margins were hurt slightly by the NCAA costs but we expect them to widen in the current quarter.
The New York-based company said it now expects its full-year percentage growth in net income per share to be at least low teens. Previously, the company had said profits would grow in the low teens.
(Reporting by Yinka Adegoke, editing by Dave Zimmerman)